5 hard years of unsuccessful flesh aibisen LED lighting input termination

[news] LED lighting market prospects China broad, who do not want to give up easily, but the hands-on development of LED lighting has discovered the "bones" is not so good at this, aibisen in order to stop, finally decided to terminate the investment in LED lighting business.

Abison May 18th evening announcement, the board of directors approved "on the termination and adjust the part of equity investment projects and will permanently add liquidity to raise funds bill", decided to stop the current LED lighting business. At the same time decided to terminate the construction of LED lighting products and adjust the LED technology research and development center construction projects, and the above two raised investment projects related to raise funds totaling 47 million 423 thousand yuan for the permanent supplement of liquidity.

LED lighting business does not decide to terminate the investment earnings

The reason for the termination of the LED lighting project, Abison said, LED lighting as a hot pursuit of the market, because of technology and funds are not high threshold, a large number of enterprises and capital began to enter the field of this industry in recent years, the rapid expansion of production capacity, the product price is not broken down, in addition to a small number of brand, technology and channels of the company the vast majority of enterprises, mainly by means of price competition, industry gross margin is very low.

Abison as early as 2010 has entered the field of LED lighting, after nearly 5 years of hard work, LED lighting business, although there is a certain growth, but the overall slow growth. 2012 to 2014 sales were 32 million 312 thousand and 700 yuan, 39 million 503 thousand yuan and 42 million 60 thousand and 800 yuan, and the gross margin over the same period decreased, in 2012 to 2014 were 20.21%, 11.61% and 5.22% in the first quarter of 2015, LED lighting products orders only about 6 million 400 thousand yuan. Since the company set foot in the LED lighting business has not been profitable, and a certain degree of loss every year, from the market's competitive position and the company's ability to view resources, the short term is still unable to change the status quo. Therefore, if you continue to invest in LED lighting business, will only drag the main industry, the interests of the company and shareholders. In order to improve the efficiency of the use of funds raised to maximize the interests of the company and shareholders, after careful study, the company decided to terminate the construction of LED lighting products.

Abison said that at present, the business of LED lighting business in the company in the proportion is very small, the main source of income and profits of the company are in the display of the LED business, but from the current situation of the development of LED display industry, LED display business still has great room for growth. The termination of construction project of LED lighting products, and to raise the remaining funds for the development of the main business LED display business, the company focus on doing business, not only conducive to the development of the industry, but also conducive to improve efficiency in the use of funds raised, to maximize the interests of shareholders, will not adversely affect the company's production and operation.

LED technology research and development does not include lighting category

According to the original project planning, LED technology research and development center project will focus on EMC technology, portable LED display technology, LED display technology, LED display reliability of energy-saving technology, cold warm color automatic control LED indoor lighting system, the tunable LED growth light and light type solar LED lights seven aspects of research and development, according to the at the time of the "feasibility study" program, which with LED lighting product development related equipment intends to invest 15 million 757 thousand and 600 yuan.

In view of the company decided to stop the LED lighting business, and intends to terminate the construction project of LED lighting products, technology research and development center will no longer be cold warm color automatic control LED indoor lighting system, development of color LED growth light, portable solar LED lights and LED lighting products and other related aspects of the investment, and carry on the corresponding adjustment to the construction project LED technology research and development center, is no longer the purchase of related equipment. (text / China LED network Flora)

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